The shares of one of the leading broker and financial services providers jumped 9 percent in the day’s trade after SAT set aside Sebi’s order for the company to stop onboarding new clients for 2 years and reduce the penalty placed.
At 12:30 p.m. the shares of IIFL Securities Limited were trading at Rs. 124.80, up 5.85 percent from its previous day’s close price of Rs. 117.90 and its market capitalization is Rs. 3,794 Crores.
The Hon’ble Securities Appellate Tribunal (SAT) has set aside the orders passed by the Securities and Exchange Board of India prohibiting IIFL Securities from onboarding new clients for two years in respect of its business as a stockbroker and it has also reduced its monetary penalty to Rs. 20 lakhs from Rs. 1 Crore.
Following this, the chairman of IIFL Securities Mr. R. Venkataraman said, We are pleased that Hon’ble SAT has set aside the SEBI order prohibiting the Company from onboarding new clients. We reiterate our commitment to serve all our clients with the highest degree of corporate governance.
As of Q2FY24, IIFL Securities have Rs. 1.69 Lakh Crores of Assets under management and the AUM Breakup is as follows, 38 percent in Mutual Funds, 18 percent in Bonds, 15 percent in Fixed Deposits, 15 percent in Alternate Investment Funds, 8 percent in Portfolio Management Services, 2 percent Loan and the rest 4 percent from others.
In FY23, 82.63 percent of the Income was Generated from Fees and Commission Income, 14.97 percent from Interest Income, and 1.26 percent from Rental Income.
The company’s revenue from operations grew 9.72 percent from Rs. 1,232.33 Crores in FY22 to Rs. 1,352.08 Crores in FY23, accompanied by profits of Rs. 306.06 Crores to Rs. 250.16 Crores.
IIFL Securities a broking arm of the IIFL Group, offers research and broking services, financial products distribution, institutional research, and investment banking services.
Written by: Bharath K.S
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